Reading the Tea Leaves.

How many of you take the time to look at options that are the same distance away from the underlying, and what do you think about it. I've been taking positions on the S&P 500 lately, and I find it interesting to notice the difference between options that are say, 40 points below and 40 above. This morning the calls had bigger premiums than the puts, and this was before the move down. I haven't compared them within the last hour or so, the calls had fatter premiums....then down we went.

Maybe the calls have bigger premiums because of Abby Cohen's call for...what was it, 1700 on the S&P next year? She has a lot of credibility..., alot of other's are calling for a big up year next year also.

Anyways, what do you think of when you see a disparity in premiums between options that are the same distance away from the underlying?

How many of you take the time to look at options that are the same distance away from the underlying, and what do you think about it. I've been taking positions on the S&P 500 lately, and I find it interesting to notice the difference between options that are say, 40 points below and 40 above. This morning the calls had bigger premiums than the puts, and this was before the move down. I haven't compared them within the last hour or so, the calls had fatter premiums....then down we went.

Maybe the calls have bigger premiums because of Abby Cohen's call for...what was it, 1700 on the S&P next year? She has a lot of credibility..., alot of other's are calling for a big up year next year also.

Anyways, what do you think of when you see a disparity in premiums between options that are the same distance away from the underlying?

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Arnie I actually was watching CNBC when Abbie was asked and she said 1550! not 1700. (This was a couple of weeks ago when we were toppy) Whether or not she changed it I don't know but while she thought 2007 would be OK I got the impression she was NOT that bullish.

Arnie I actually was watching CNBC when Abbie was asked and she said 1550! not 1700. (This was a couple of weeks ago when we were toppy) Whether or not she changed it I don't know but while she thought 2007 would be OK I got the impression she was NOT that bullish.